Security powerhouse Wiz turns down $23 Billion acquisition offer from Google to focus on 1 Billion in annual recurring revenue milestone

In a surprising turn of events, leading cloud security provider Wiz rejected a massive $23 Billion acquisition offer from Google last week to remain an independent company. According to sources close to the matter, Google had approached Wiz to acquire the startup in what would have been one of the largest tech acquisitions ever.

However, Wiz CEO Assaf Rappaport revealed in an email to employees that while the offer from Google was certainly tempting, the founders believe they can take the company even further on its own. Rappaport said the next goals for Wiz are achieving $1 Billion in annual recurring revenue as well as pursuing an initial public offering. Turning down such a lucrative offer was a difficult decision but one the CEO felt confident about due to the talent and potential of the Wiz team.

Industry analysts have speculated several possible reasons for why the deal may have failed to come to fruition. Some believe Wiz wanted to explore higher valuations from other suitors prior to going public. It’s also possible issues came up during Google’s due diligence process or the actual price was less than the reported $23 Billion. Regardless, the breakdown shows Google continues to struggle closing large-scale mergers and acquisitions despite its immense size and finances.

Founded in early 2020, Wiz has seen explosive growth protecting businesses in the rapid shifting cloud landscape. With over $1.9 Billion in funding to date, the startup was recently revealed to have $500 Million in annual recurring revenue just two years after inception. If the $23 Billion valuation from Google was accurate, it would have represented a high multiple of 46 times Wiz’s current revenue stream. By remaining independent and achieving its goals, the company expects to deliver far greater shareholder value in the long run.